Industry Analysis & Industry Trends
Although demand for truck rentals and leases waxed and waned, the industry received an overall net increase in demand over the five years to 2014. Increasing emissions and fuel-efficiency regulations are anticipated to drive demand from the commercial market going forward. Indeed, regulation aimed at lowering emissions from long-haul tractor-trailers and large pickup trucks by 23.0% by 2019 will require downstream customers to either purchase or lease new vehicles. IBISWorld expects that the majority of companies will lease their trucks from industry operators as downstream fleet operators seek more predictability and flexibility in their cost structures... purchase to read more
Industry Report - Starting a New Business Chapter
Barriers to entry in the industry are moderate with the largest barrier being initial capital requirements. Participants in this industry must purchase a full fleet of cars before starting their business, this requires significant amount of capital outlay. High capital costs typically deter new entrants especially in a market with a medium to high level of competition. When competition is higher, it typically takes a longer time to recoup initial investments.
In addition to capital requirements, there are some other barriers that new entrants may experience when trying to enter the industry. The main barriers relate to brand recognition and distribution networks... purchase to read more